India could reach $20 tn by 2036, but there’s a catch

India could reach a $20 trillion economy by 2036, according to a research report by domestic brokerage firm Equirus. The report lays out a 20-step reform agenda that could raise India's growth trajectory and strengthen the external balance. The brokerage has estimated that these measures could lift India's growth from its current base of about $3.7 trillion to $20 trillion, a 5.5 times expansion.

For this to happen, India needs to raise underlying rupee growth to around 14.2 percent and achieve sustained annual rupee appreciation of about 3-3.6 percent. The report further highlights that services are expected to become the principal engine of expansion, with services currently accounting for about 54 percent of GDP and needing to rise beyond 65 percent.

The composition of growth is as important as its pace, with services expected to expand from roughly $2 trillion to more than $11 trillion.